Economics Professor Uses New York FCA to Sue

Peter Faber criticized an Indiana University economics professor’s use of New York’s False Claims Act to sue a major bank for failing to pay New York State taxes, saying it illustrates the mischief that can happen if citizens act as vigilantes. “We don’t generally allow citizens to usurp the role of competent government agencies,” Mr. Faber elaborated. “If someone thinks that a corporation is not meeting its tax obligations, he should go to the IRS or state tax department and let them decide whether to pursue it.”